Resource: "Additional Problems With Answer" in the final pages of Ch. 27 of Basic Finance
Review the additional problem comparing leasing versus purchasing.
Write a 700-word paper comparing the factors involved in deciding whether to purchase or lease this equipment.
Format your paper consistent with APA guidelines.
Here are a few tips and expectations for what I will look for in the week 4 paper.
Minimum word count of 700 words. Quality is critical at all times with regard to team papers!
Table or graph; well formatted with an example of lease versus buy. Inserted within the word document.
Use of the time value of money concept applied to the lease versus buy decision. How does TVM affect the options involved
TIPS: Bullet points can be effective in summarizing information. The table (example of lease versus purchase) makes it easier to discuss the topic and is a great way to use an example for the reader (me) to visualize to options given. Headings in a paper can help organize the paper. A conclusion is critical to tying together all concept introduced in the paper AND a final decision the team had made can be placed in this section. Make a sound decision to lease or purchase as a team.
In this paper a replication consequence will be deliberated in order to understand the assessment between lease and purchase. In everyday cases, many individuals often come across the same question. Answers should be based upon convenience, long term or short term as well as options available. Especially when it comes to business, there is no need to rush to make a choice. During the simulation it will be discussed the process in which a company has to make a purchase choice based on assets, any liabilities involved as well as the need versus luxury. The other option to lease would involve contracts, high payments, no property claim on the object as well as many other charges excluding maintenance which should be provided by leasing company. Today we will explore both scenarios and thoroughly review the choices and how each will impact the company differently from one another.
Before a decision regarding the purchase of capital equipment is made, you may want to analyze the costs of a lease versus a purchase through a discounted cash flow analysis. This analysis...
Lease versus Purchase Paper
FIN/370 Finance for Business
Kelly Cahill, Joseph De Jesus, Timothy Grow,
Franchesca Saunders, Amanda Swartz, Christine Thomas
February 16, 2015
Lease versus Pu...